What are Scope 2 emissions?

In order to meet regulatory requirements such as the Corporate Sustainability Reporting Directive (CSRD) and to meet stakeholder expectations, companies must accurately record their_{CO2 emissions}. Scope 2 emissions are a key element of this. But what exactly are Scope 2 emissions and how are they measured?

Scope 2 emissions: An introduction to the basics

Scope 2 emissions, like Scope 1 and 3 emissions, fall under the so-called "scopes". This term is used in connection with the environmental management of companies - more precisely in the calculation of the_{carbon footprint}. The scopes refer to three categories of greenhouse gas emissions caused by an organization or company. When companies calculate their_{CO2 emissions}, the emissions are divided into scopes 1, 2 and 3.

The origin of the Scopes dates back to 2001, when the Greenhouse Gas Protocol (GHG) created an international standard for emissions reporting. Since then, companies have been able to quantify their impact on climate change. The classification into Scope 2 emissions, but also Scope 1 and 3, has provided companies with a structured and comparable method for calculating and reporting their carbon footprint ever since.

What are Scope 2 emissions?

Scope 2 emissions include indirect greenhouse gas emissions. These arise when a company consumes energy in the form of

• Electricity
• Steam
• Heat
• Cooling

generated outside the company's own organization .

How do Scope 2 emissions differ from the other scopes?

In contrast

• Scope 1 emissions are direct emissions from sources owned or controlled by the company compared to Scope 2. These include, for example, emissions from operational facilities and vehicles. For example, emissions from the operation of machinery or air conditioning systems as well as emissions from the use of the company fleet.
• Scope 3 emissions, like Scope 2 emissions, represent indirect emissions. These are generated in Scope 3 along the company's entire value chain and are not directly owned or controlled by the company. In other words, they are not generated within the company. These include, for example, upstream emissions from the production of purchased products or downstream emissions that only arise when the products are used or disposed of by consumers. When calculating the_{carbon footprint}, Scope 3 emissions are often the most complex part because they require an analysis of the entire supply chain.

Scope 2 emissions: Why they are important

Companies that record, analyze and reduce their emissions data ensure long-term success:

• They are subject to reporting obligations such as the CSRD according to
• Optimize your operating processes
• Increase competitiveness
• Minimize costs and risks
• Meet the requirements of internal and external stakeholders
• Score points as an attractive employer
• Profit in employer branding

However, in order for companies to benefit from these advantages, it is essential to report comprehensively and include all scopes.

How are Scope 2 emissions measured?

The company's energy consumption and specific emission factors are used to measure Scope 2 emissions. These indicate how much _CO₂ is emitted during the production of a unit of energy.

The GHG Protocol is often used to calculate a company's _carbon footprint. This provides guidelines for recording Scope 2 emissions as well as Scope 1 and 3. ISO 14064 also provides standards for quantifying and reporting these emissions. Tools such as _CO₂ balance sheet calculator help companies to calculate their corporate carbon footprint - including all Scope 1, Scope 2 and Scope 3 emissions.

‍Effectivemeasures to reduce Scope 2 emissions

Companies can take the following measures to reduce Scope 2 emissions:

• Energy transition: Switch to renewable energy sources such as wind, solar or hydroelectric power in order to minimize the consumption of fossil fuels.
• Energy efficiency: Investment in energy-efficient technologies and equipment, including efficient air conditioning systems for companies, lighting and heating systems, in order to reduce overall energy consumption.
• Green electricity contracts: Conclusion of green electricity contracts or Power Purchase Agreements (PPAs), which ensure that the electricity purchased comes from sustainable sources.
  

How you can easily record Scope 2 emissions

There are specialized software solutions for recording, analysing and managing scopes that help companies to carry out _CO₂ calculations automatically. These tools also make it easier to comply with reporting standards such as CSRD or ISO 14064.

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With Planted, we offer your company a holistic software solution. With our _{carbon footprint} calculator, companies can record their Scope 2, Scope 1 and Scope 3 emissions in accordance with standards and calculate their_{carbon footprint} with TÜV certification. Would you like to get to know our solution without obligation? Book your free demo today.